Most times the tach filter is put in-line so that the "signal" from the distributor is clean when it comes into the tach. On some aftermarket tachs for the HEI, the inline filter is manual and is a small box with a screw in it. You adjust the screw to get an accurate reading on the tach, to keep the needle from jumping. On others it is preset and no adjustment is neccessary while others have an adjustment screw on the bach of the tach. As stated earlier, on the back of the Olds rallye pac cluster there is an "8 - 6" selector switch, which is for the # of cylinders. This is a type of filter too.
If it's easier to think of, it's kind of like an inline filter for an amp; if the power voltage is not clean coming in the amp won't be able to produce the bass punch you expect. Or if it's on the output, the highs and lows come out like crap-o-la through your sub-woofers, tweeters and speakers.
In any event if I were you I'd keep the filter and follow the instructions that came in the kit. Also take a trip to the library (or online) and try to find a Chilton / Haynes manual with wiring information or better yet order a wiring diagram for your car.
Good luck.